Non-Cryogenic Air Separation Unit Market Size - By Gas, By End Use, Analysis, Share, & Forecast, 2025 - 2034

Non-Cryogenic Air Separation Unit Market Size

The global non-cryogenic air separation unit market size was valued at USD 1.8 billion in 2024 and expected to reach USD 2.5 billion by 2034, growing at a CAGR of 3.4% from 2025 to 2034. Government initiatives and regulatory policies continue to increase the market through direct financial support and the provision of an advantageous policy framework for non-cryogenic air-separation technologies. For instance, in 2024, the U.S. Department of Energy's Industrial Efficiency and Decarbonization Office made over USD 375 million in grant funding available to support industrial decarbonization projects, including several projects aimed at air separation systems integrated with renewable energy sources.
 

Sustainability objectives and corporate social responsibility (CSR) activities provide a strong foundation for raising the adoption of the systems. Industrial operators use these systems to meet not only regulatory requirements but also the ever-increasing demands of the stakeholders willing to reduce their environmental footprint. For instance, air products in the USA, in its 2024 Sustainability Report, laid out its advancement toward alternatives, including advanced gas separation non-cryogenic systems, which have brought energy efficiency improvements of the order of 20 % and CO? emission reductions of the order of 15-20%.
 

The worldwide concern on environmental sustainability and the clean energy transition has also impacted the rapidly growing non-cryogenic air separation unit market. Governments around the world and international bodies, including the United Nations Environment Programme, actively support policies on emissions reduction from non-cryogenic alternatives by putting forward energy efficiency initiatives that are directly causing voluntary demand for such alternatives. For instance, in Germany, many had their official report showing that strict regulations on carbon emissions caused the adoption of other adoption-efficient non-cryogenic air separation technologies to magnify within 20 % over the last two years.
 

The tariffs enacted by the Trump administration in april 2025 are likely to have a significant impact on the non-cryogenic air separation unit (ASU) market. These tariffs increase the cost of imported components essential for ASU manufacturing, leading to higher production expenses for U.S. companies. Industries including healthcare, manufacturing, and energy, which rely on ASUs for gas production, may face increased operational costs. To mitigate these effects, companies might explore alternative supply chains, negotiate with domestic suppliers, or invest in local manufacturing capabilities. Additionally, the tariffs could prompt a revaluation of pricing strategies and potential delays in project timelines.
 

Non-Cryogenic Air Separation Unit Market Trends

The non-cryogenic air separation unit industry currently exhibits major trends driven largely by the widespread adoption of energy-efficient technologies. The report from the International Energy Agency states that energy efficiency has improved from around 70% upward, with new units achieving even more than 95% efficiencies. This improvement subsequently reduces the operational costs while contributing positively to sustainability goals globally by reducing carbon emissions.
 

On-site gas generation systems are also gaining traction in the market due to their cost-effectiveness and reliability, allowing industries to produce gases including nitrogen and oxygen on demand. For instance, in 2024, Enerflex Ltd. deployed modular nitrogen generators for a major Permian Basin operator to comply with the U.S. Pipeline and Hazardous Materials Safety Administration (PHMSA) 2024 Pipeline Safety Rule, which mandates stricter inert gas standards for aging pipelines.
 

In addition, the application of digitalization and smart monitoring systems to air separation units is rapidly progressing. For instance, in 2024, CRYOTEC partnered with Siemens Energy to deploy integrates AI/IoT for real-time optimization and predictive maintenance in air separation units at thyssenkrupp’s Duisburg plant, cutting energy use 18% and downtime 15%, supporting EU Net-Zero Industry Act steel decarbonization goals.
 

Expansion in the air separation capabilities around the globe creates incredible opportunities for market players. Growing adoption of renewable energy sources for air separation is further opening new growth opportunities. For instance, Sichuan Air Separation launched a geothermal-powered plant in Kenya using AI and advanced heat exchangers, thus reducing energy by 25%. In partnership with ADB, it supplies affordable oxygen to steel and healthcare sectors to promote renewable-driven air separation in emerging markets.
 

Non-Cryogenic Air Separation Unit Market Analysis

• Non-cryogenic air separation unit industry was valued at USD 1.6 billion, USD 1.7 billion and USD 1.8 billion in 2022, 2023, and 2024 respectively. Based on gas, the nitrogen segment drives demand for non-cryogenic air separation units. For instance, the FDA mandates nitrogen for modified atmosphere packaging to give shelf-life extension, hence stimulating growing adoption in food processing industries.
   
• Oxygen demand grows as non-cryogenic units support medical oxygen generation and wastewater treatment. For instance, during Covid times, the Ministry of Health in India installed PSA units to solve the acute oxygen shortage, leading to rapid growth of the market. In addition, oxygen-enriched airflow was promoted by the U.S. EPA for better efficiency at wastewater management, which is in line with the Clean Water Act.
   
• Argon is driving market demand in the steelmaking and welding industries for high-purity inert gases. For instance, The Clean Steel Partnership, established by the European Commission, drives demand for efficient separation technologies due to the priority given to the use of argon in decarbonizing steel production. Argon is widely used as a shielding gas for aerospace welding with the support of the U.S. Department of Energy’s Advanced Manufacturing Office allocated USD 400 million.
   

• The healthcare has over 18% of market revenue share in 2024. Based on end use, the market is segmented into iron & steel, oil & gas, healthcare, chemicals, others. Iron and steel have been prominent users of oxygen since oxygen plays a vital role in enhancing blast furnace efficiencies, and argon has wide application in steelmaking to purify the molten steel.
   
• The increase in the use of on-site nitrogen-oxygen generators in steelmaking facilities is fueled by the U.S. Department of Energy’s Industrial Decarbonization Roadmap initiatives on oxygen-enriched combustion systems to lower emissions.
   

• Oil & Gas companies use nitrogen purging and inert gas blanketing to prevent explosions and maintain the safety of their equipment and facilities. For instance, the U.S. Pipeline and Hazardous Materials Safety Administration (PHMSA) mandates nitrogen injection under 49 CFR 195.2, which speeds up the launching of non-cryogenic units for economical compliance for aging pipelines. Offshore LNG uses nitrogen for tank inerting based on the IGF Code by the International Maritime Organization, which sets safety standards for gas carriers.
   
• Medical oxygen manufactured using portable pressure swing adsorption (PSA) units has driven the demand for healthcare. The World Health Organization Technical Specifications for Oxygen Concentrators granted PSA emergency use credibility, and India's Ministry of Health quickly followed suit, installing over 4,000 units. In addition, the Emergency Use Authorization by the U.S. FDA for oxygen generators concealed its critical infrastructure in their role as an oxygen source in critical care.
   
• The chemical industry will grow at a CAGR of over 3% by 2034, as industries utilize non-cryogenic units for nitrogen-based inerting and oxygen feed into hydrogen peroxide production. There is a growing demand for nitrogen generators as the REACH regulations enforced by the European Chemicals Agency impose stringent inert gas standards for hazardous chemical storage. Initiatives including the United States Department of Energy Hydrogen Shot promote oxygen use in green hydrogen electrolysis along with IRA-backed developments including the Advanced Clean Energy Storage Hub in Utah.
   

• The U.S. non-cryogenic air separation unit market was valued at USD 0.25 billion, USD 260 million and USD 270 million in 2022, 2023, and 2024 respectively. The Infrastructure Investment and Jobs Act from the U.S. is financing hydrogen hubs, thereby creating a requirement for oxygen for electrolysis and nitrogen for ammonia synthesis, which consequently drives a greater demand for modular units. It enforces 49 CFR 195.2, which relates to pipeline inerting by the Pipeline and Hazardous Materials Safety Administration (PHMSA) and accelerates nitrogen generation to be deployed in shale gas facilities, including the Permian Basin.
   
• Europe non-cryogenic air separation unit market will grow at a CAGR of over 1.4% till 2034 owing to decarbonization policies and green steel production, leading to an increased need for hydrogen and nitrogen infrastructure. For instance, the EU Net-Zero Industry Act mandates the use of oxygen-enriched combustion in steel plants, as seen in ArcelorMittal's Smart Carbon projects in Belgium, where oxygen is supplied at a low cost via non-cryogenic units. This shift towards cleaner industrial processes is driving the demand for nitrogen generation technology in the region, creating opportunities for companies specializing in this field.
   
• Rapid industrialization and expansion of healthcare infrastructure have resulted in massive demand in the Asia Pacific region. For instance, the National Green Hydrogen Mission of India supports oxygen-based electrolyser projects, including the Reliance Industries site in Gujarat, which are adopting non-cryogenic units. Additionally, the Green Growth Strategy of Japan finances nitrogen generators for semiconductor manufacturing facilities, whereas PSA oxygen units have been carried out in rural clinics all over Indonesia and Vietnam in Southeast Asia's healthcare industry in line with WHO guidelines.
   
• Middle East & Africa expansion is fuelled by energy expansion and increased demand for medical oxygen in the aftermath of the COVID-19 pandemic. The UAE's National Hydrogen Strategy promotes the utilization of nitrogen in ammonia-export projects, including the ADNOC Fujairah plant, thereby creating a larger demand for high-capacity units. Additionally, South Africa's National Health Act made it compulsory to use PSA oxygen systems in public hospitals, which solves the shortage of medical oxygen witnessed during COVID-19.
   
• Latin America non-cryogenic air separation unit market is growing through investments in mining and green hydrogen production, fuelled by the region's abundant natural resources and commitment to sustainable energy solutions. For instance, Brazil's National Steel Plan 2030 promotes oxygen injection in blast furnaces, featuring the model of CSN's Volta Redonda plant, which has helped reduce coke consumption. Furthermore, the Colombian Ministry of Health, under PAHO guidance, has deployed portable oxygen generators to remote areas, in accordance with reforms concerning health post-pandemic.
   

Non-Cryogenic Air Separation Unit Market Share

The top 5 companies are Air Liquide, Linde plc, Air Products and Chemicals, Inc., Messer, and Taiyo Nippon Sanso Corporation. These companies leverage advanced pressure-swing adsorption (PSA) and vacuum-swing adsorption (VSA) technology with considerable experience in global distribution networks and partnerships with energy and industrial sectors. These companies have retained their share through investments in research and development aimed at improving technology and expanding the reach of that technology.
 

Air Products and Chemicals, Inc. supports the green energy transition, including hydrogen-ready, non-cryogenic units. The company has implemented the NEOM Green Hydrogen Project in Saudi Arabia, where oxygen generated from PSA units is used for the electrolysis of 650 tonnes per day of carbon-free hydrogen, aiding in the larger objective of global decarbonization. Air Products provides the scalable solutions needed to lessen the dependence on cryogenic systems, which ultimately reduces costs and energy by 30-40% in the production of ammonia and methanol in collaboration with Saudi Aramco and ACWA Power.
 

Air Liquide, based in France, with a revenue of USD 31.1 billion in 2024, specializes in hydrogen energy and medical-grade oxygen production. Through the Clean Hydrogen Port Arthur project in Texas, backed by a grant of USD 600 million from the U.S. Department of Energy, the company has deployed non-cryogenic units to produce low-carbon hydrogen for refining in accordance with IRA incentives.
 

Linde plc, based in the UK with a revenue of USD 34.2 billion in 2024, leads in industrial gas solutions for steel and chemical sectors. Under the guidelines of the EU Innovation Fund, it has partnered with ArcelorMittal in Belgium, applying VSA oxygen units to blast furnaces and achieving CO? reductions of 20%.
 

Messer, based in Germany with a revenue of USD 4.45 billion in 2024, focuses on sustainable oxygen for wastewater treatment and steel decarbonization. The on-site VSA units installed at German municipal plants, required by the EU Urban Wastewater Directive, provide 35% energy savings as compared to cryogenic systems. In addition, Messer supplies argon purging systems to the firm for low-carbon steel production according to the Hydrogen Strategy of Germany.
 

Taiyo Nippon Sanso Corporation based in Japan with a revenue of USD 8.8 billion in 2024, dominates APAC’s electronics market with ultra-high-purity nitrogen generators. Its partnerships in the Kumamoto fab by TSMC ensure the 99.9% purity of 3nm chipmaking according to the goals of METI regarding the resilience of semiconductors.
 

Non-Cryogenic Air Separation Unit Market Companies

Some of the key players operating across the non-cryogenic air separation unit industry are:

• Air Liquide
• Air Products and Chemicals, Inc.
• AIR WATER INC
• AMCS Corporation
• CRYOTEC Anlagenbau GmbH
• Enerflex Ltd.
• KaiFeng Air Separation Group Co., LTD.
• Linde plc
• Messer
• Praxair Technology, Inc.
• Ranch Cryogenics, Inc.
• Sichuan Air Separation Plant Group
• Taiyo Nippon Sanso Corporation
• Technex
• Universal Industrial Gases, Inc.
• Yingde Gases
   

Non-Cryogenic Air Separation Unit Industry News

• In April 2025, Taiyo Nippon Sanso has been developing ammonia-oxygen combustion and oxygen-enriched combustion technologies as part of a five-year project from FY 2021 to FY 2025. These efforts aim to enhance environmental sustainability in industrial processes.
   
• In June 2024, Air Liquide announced plans to invest up to USD 850 million to build, own, and operate four Large Modular Air Separation Units (LMAs) and related infrastructure. This initiative supports ExxonMobil's low-carbon hydrogen project in Baytown, Texas, aiming to increase Air Liquide's oxygen production capacity in Texas by 50%.
   
• In June 2024, Yingde Gases Group signed a new air separation agreement with Changzhou Eastran Group under the Oriental Runan Group. The partnership involves constructing a new cryogenic air separation unit to support Eastran Group's environmental protection transformation, energy saving, and efficiency improvement initiatives.
   
• In September 2024, Air Products finalized the USD 1.81 billion sale of its liquefied natural gas (LNG) process technology and equipment business to Honeywell. This strategic sale reflects Air Products' commitment to focusing on its industrial gases and clean hydrogen growth strategy.
   

This non-cryogenic air separation unit market research report includes an in–depth coverage of the industry with estimates & forecast in terms of revenue in ‘USD Billion’ from 2021 to 2034, for the following segments:

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Market, By Gas

• Nitrogen
• Oxygen
• Argon
• Others

Market, By End Use

• Iron & steel
• Oil & gas
• Healthcare
• Chemicals
• Others

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Spain
  • Italy
• Aisa Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • South Africa
• Latin America
  • Brazil
  • Argentina